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IDENTIFYING ECONOMICAL READINESS OPTIONS: A COST RATIO TEST

Operational Research Div, Ottawa ONT (CAN) Directorate of Operational Research (Joint and Land)

Abstract

The report describes a cost estimation relationship for readiness options. It is the result of work carried out in conjunction with the NATO Specialist Team on the Evaluation of Readiness and Sustainment Policy. After providing background information on cost estiamtion, a ratio test is derived for identifying economical options for maintaining and generating operationally ready forces. Formulae are given for estimating cost savings over a planning horizon.